Executive officers of Jordan Company are wrestling with their budget for the next year. The following are two different sales estimates provided by two difference sources:

Source of Estimate	First Quarter			Second Quarter			Third Quarter			Fourth Quarter
Sales manager	$	377,000		$	316,000		$	275,000		$	482,000
Marketing consultant		511,000			456,000			402,000			658,000

Jordans past experience indicates that cost of goods sold is about 55 percent of sales revenue. The company tries to maintain 10 percent of the next quarters expected cost of goods sold as the current quarters ending inventory. This years ending inventory is $32,000. Next years ending inventory is budgeted to be $33,000.

Required

Prepare an inventory purchases budget using the sales managers estimate.

Prepare an inventory purchases budget using the marketing consultants estimate.

Required A

Required B

Prepare an inventory purchases budget using the sales managers estimate. (Round your final answers to nearest whole dollar amount.)

	First Quarter	Second Quarter	Third Quarter	Fourth Quarter
Sales	$377,000	$316,000	$275,000	$482,000
Cost of goods sold	$203,500	$142,200	$151,250	$265,100
Plus: Desired ending inventory
Total inventory needed	203,500	142,200	151,250	265,100
Less: Beginning inventory
Required purchases	$203,500	$142,200	$151,250	$265,100

Required B

Prepare an inventory purchases budget using the marketing consultants estimate. (Round your final answers to nearest whole dollar amount.)

	First Quarter	Second Quarter	Third Quarter	Fourth Quarter
Sales	$511,000	$456,000	$402,000	$658,000
Total inventory needed	0	0	0	0
Required purchases	$0	$0	$0	$0